Latest news with #hotelbusiness
Entrepreneur
15 hours ago
- Business
- Entrepreneur
The Dangers of Being Too Attached to Your Business
Opinions expressed by Entrepreneur contributors are their own. When I was growing up, my parents were in the hotel business. In fact, at one point, they owned three hotels. My dad died when I was quite young, and my mother continued operating the hotels. She did well, but she soon realized that the three hotels were too much for her, so she sold two of them. She proceeded to invest heavily in the remaining hotel. She expanded the dining room and introduced "sizzling steaks," which were a huge hit at the time. She completely renovated the "tap" room and introduced daily entertainment for the patrons. People were raving about what a great businesswoman my mother was! However, my mother never talked business with me. She kept everything close to the vest, and I never appreciated what she had done. But then again, I didn't really care. I was too busy playing sports and chasing girls! Related: 7 Things I Wish I'd Known Before Starting a Business The second generation It didn't really seem as if the second generation was going to play a role in this business. My sisters got married and moved away. My brother became a lawyer and moved to Boston, and I decided to become an electrical engineer because they were receiving the highest salary upon graduation (not a good reason to become an engineer, as you will see). Somewhere between my sophomore and junior years, I got the urge to be an entrepreneur. After some research, I contacted a tailor in Hong Kong and pursued importing some of their famous suits. I never implemented it because, in the final analysis, I couldn't imagine myself measuring some guy's inseam! By my senior year, I started thinking seriously about my mother's hotel. One day, I returned from classes and learned that the hotel had burned down. So much for the hotel business! My uncle as my mentor My mother's brother, Uncle Ken, had a very successful paper distribution business. In fact, my mother told me that in 1959, he was offered $14 million for his business. It was always a major event when Uncle Ken came to visit. He would pull up in his Cadillac, and I would carry his bags into the house. He would always give me $5, and that was a lot of money at the time. When I graduated college and moved to Boston, I decided that I needed a business mentor if I was ever going to pursue my own business. My dad died when I was young, and my mother never talked business with me — so Uncle Ken was the answer. I called him and we started having dinner meetings every other month or so, and I would pepper him with questions about business. One evening, I met him at his office and he asked me to wait while he finished a meeting. The office walls didn't go all the way to the ceiling, and I could hear their conversation. They seemed to be talking about buying my uncle's company. I heard one of the men say, "Your company is only worth your equipment, and we value that at $250,000." I thought, "Wait a minute, it's 1969, and 10 years ago, the company was worth $14 million — and now it's worth only $250,000!" Related: What to Know About Selling Your Business The takeaway This is a true story. As they say, "I can't make this stuff up!" My uncle fell in love with his company. It became his "baby," and he couldn't give his "baby" up — with disastrous results. That five-minute "snippet" had a major impact on my business philosophy. But most business founders treat their companies as their "babies" and hold them far too long. Businesses, like everything else, have a life cycle. The business lifecycle Let's talk about the classic lifecycle of a business. The number of years is highly dependent on the particular industry. In a fast-changing industry like high technology, the time from start-up to decay could be a few years, while a slow-changing industry like insurance might take several years. Every company gets to a level (plateau) where, in order to get to the next level, they require a capital infusion. This usually happens between $5 and $10 million in revenue. The company may need new management as the business owner may not have the appropriate management expertise, and the company may require a CFO to strategically handle the financial requirements of growth. The company will need to increase marketing efforts and hire more competent salespeople. The company may need to open regional offices to tap new markets. The company will need more space to house the increased support and administrative staff. Just before the peak of the bell-shaped curve, where the business growth has slowed (but is still growing), a decision has to be made on how to implement a new growth surge to get to the next level. If the owner has the ability, the energy and the motivation, she/he can find the capital, either through debt or equity, to fund a new growth surge. If the owner does not have the ability, energy and motivation, hopefully they have put the company in a position to find the "right buyer." Related: Study Shows Entrepreneurs Really Do Love Their Businesses Like Their Children If the owner waits until the company's growth begins to decline, not only will it be more difficult to find the "right buyer," but also more difficult to procure the funds for organic growth. I can only imagine what my Uncle Ken would have realized from the sale of his company if he had followed this strategy and not treated his company as his "baby." Join top CEOs, founders and operators at the Level Up conference to unlock strategies for scaling your business, boosting revenue and building sustainable success.
ABC News
5 days ago
- Business
- ABC News
$8.1m Sydney home advertised as potential future boarding house to now be a hotel
A single-level brick home swamped by high rises in Sydney's inner west has sold for over $8 million — but don't expect a residential apartment development to crop up in its place. Over the weekend at 16 Walker Street, Rhodes, the owner was left with a cool $8.15 million in their pocket after waiting for their almost dream price to sell. The property was billed as an "extremely rare development site in the heart of Rhodes CBD". About 170 people were at the auction — many of whom were keen on transforming the two-bedroom property into something far bigger. But despite a highly sought-after housing market in the suburb, and with renters and first home buyers galore, a hotel will instead be in the pipeline for this 676.6 square metre site. In an online advertisement, the real estate agency representing the property suggested two potential development options — subject to council approval — either a 7-storey mixed-use building or a 66-room boarding house. Due to recent rule changes by the state government, additional parking requirements for boarding houses meant the address was not a big enough lot to include the necessary amount of car spaces, said selling agent Vanessa Kim. Revisions to the State Environment Planning Policy (Housing) in 2021 mean there must be at least two off-street car parking spaces provided on the site where a group home is erected. "Regulation has changed a lot," Ms Kim said. "We found the buyer — [a] hotel business. Walker Street doesn't have any hotel. They're all high rise neighbours, all between [this] one house. "[The] hotel is good for in this area." Another prospective buyer was looking to establish a fitness centre, Ms Kim said, with the multi-million-dollar reserve pushing most prospective residential buyers to the kerb. Ms Kim said her vendor had initially been pushing for a $9 million price tag, but they were advised to lower their expectations slightly. "If you find the right buyer, they can create their future," she said of the prospective hotel. Sydney YIMBY is a grassroots group of volunteers who are part of the Yes In My Backyard movement, supporting greater-density housing in a bid to make the city more affordable and liveable. Chair Justin Simon said the residential and hotel market are now more linked than ever. "If you don't build enough hotels, you have more residential units ending up on Airbnb … because that ends up being a higher value use for them," he said. With Sydney's shortage of space for both homes and hotels, Mr Simon said the new hotel could ultimately provide a social benefit for the community. The missed opportunity instead is that many suburbs across the inner west are not open to development at all — whether a boarding house, hotel or high-rise apartment block. "If councils don't build enough housing for the community what they're going to see is schools with shrinking populations, hospitals which cannot employ nurses and get them to move to the area because they cannot afford to live there, and they're going to see an electorate which is going to calcify further and further against any change." In a statement, a spokesperson from Canada Bay Council said the height, density and scale of Rhodes' CBD comes down to the state government's planning framework. "Within this framework, the City of Canada Bay's Development Control Plans for Rhodes guides development in the area, and highlights the need for high-quality, diverse housing options," they said. "A variety of land uses are permissible on this site and Council will continue to support the redevelopment of this site where it is consistent with the planning framework."
Skift
02-07-2025
- Business
- Skift
Hyatt Plans 90 Asia Pacific Hotels Over 5 Years
HVS Anarock's latest report shows a rare downturn in India's hotel business in May, most likely due to the short battle with Pakistan. RevPAR for hotels in May was down by over 20% from April, according to the latest data from HVS Anarock. Occupancy was down to 58%-60% in May, a year-over-year drop as well. Room rates were still up 6%-8% compared to May 2024, increasing RevPAR by 4%-6%. As for the occupancy decline year-over-year, there is a lot more supply, and it will continue to increase. In the first five months of the year, over 5,300 branded keys came online, up 46% over last year. We will see if there is a bounce back in June. Thailand hotel operators are seeing delays in the approval process for the initial phase of the 1.7 billion baht co-payment scheme, while online travel agents are offering prices lower than those under the government's subsidy. The scheme is aimed at local tourists and opened for registration for the public on July 1. Only 2,000 hotels were reported by the Thai Hotels Association to have registered for it. The Tourism Authority of Thailand said there were numerous technical issues on the first day of registration. Given what is going on with the Prime Minister now being suspended, it is pretty safe to say that hotels have other things to worry about, given the slowdown in visitation and no signs that anything will change, given the political turmoil. Asia's branded residences market was reported to have reached a valuation of US$30.7 billion, a high for the region. The sector currently encompasses 38,893 units spread across 178 active projects available for sale. Thailand has emerged as the frontrunner in the market, with 18% of the total market share in Asia. The Philippines is second at 12%, with South Korea at 11%. Vietnam accounts for 41% of the pipeline of 28,460 units across 105 projects that have yet to be released for sale. Hyatt Hotels Corporation announced plans to expand its luxury and lifestyle brand portfolio across Asia Pacific with a pipeline of close to 90 properties expected to open over the next five years. The strategic growth includes the debut of the Thompson Hotels brand in the region alongside significant new entries and expansion for Andaz, The Standard, and Park Hyatt brands in sought-after destinations, including Thailand, Malaysia, and Australia, in 2025 and 2026. Hyatt has doubled the number of luxury rooms since 2017, tripled its resort rooms, and grown lifestyle rooms five-fold globally. As of the end of 1Q25, 64% of Hyatt's Asia Pacific hotels are in the luxury and upper-upscale segments. The Thompson Hotels brand will be welcomed to Asia Pacific in the fourth quarter of this year with the Thompson Shanghai Expo. Andaz will continue to expand with Andaz Gold Coast, Andaz One Bangkok, and Andaz Shanghai ITC, while the Park Hyatt brand will debut in Malaysia with Park Hyatt Kuala Lumpur next month and the first Park Hyatt resort in Vietnam in 1Q26, the Park Hyatt Phu Quoc. Hilton announced the signing of Waldorf Astoria Bali with Indonesian property developer PT Balibuana Perkasa. The luxury hotel will open in late 2027 along Sawangan Beach. This will be the developer's second property with Hilton, following the Hilton Bali Resort. This will join Hilton's existing portfolio of 16 operating and 12 pipeline hotels and resorts across Indonesia. The Waldorf Astoria Bali will have 71 expansive villas and 68 guest suites, multiple distinctive dining destinations, including the brand's signature Peacock Alley. Wellness experiences will include a spa, fitness center, and swimming pools overlooking the Indian Ocean. There will be 748 square meters of event space, including a 465-square-meter ballroom. Pacifica Hotels G.K. subsidiary Karasuma Hospitality G.K., and Taisei Yuraku Real Estate Co. Ltd. signed a franchise agreement with IHG Hotels & Resorts to rebrand a 103-room hotel in a prime Kyoto location to IHG's new midscale brand, Garner. The Garner Hotel Kyoto Shijo Karasuma will open this coming November following an extensive interior renovation of the existing property. This will be the first Garner hotel in Kyoto and the fourth in Japan. IHG's Six Senses brand signed a hotel management agreement with Narai Hospitality Group to introduce Six Senses Bangkok as part of Hatai, a mixed-use development on the site of the Narai Hotel in the heart of Silom. The Six Senses Bangkok will have around 100 rooms and suites, including a 700-square-meter suite. There will be a rooftop pool, and the main restaurant will connect to a sky lobby via a sky garden. Guests can expect integrated wellness offerings with the Six Senses Spa Bangkok. Anantara Kihavah Maldives Villas announced the debut of its reimagined Beach Pool Villas, setting a new benchmark in beachfront luxury. Resorts World Sentosa in Singapore launched the three-story mall Weave, opening on July 1. The lifestyle and community enclave spans 20,000 square meters and houses almost 40 tenants, but not all have moved in yet. This is part of the largest $6.8 billion Resorts World Sentosa expansion plan. Asset World Corp Public Company Limited (AWC) signed a long-term Green Loan agreement worth THB7,904 million with Krungthai Bank. The Green Loan will be used for the development of the ultra-luxury flagship project, Hotel Plaza Athénée Nobu New York, located in the heart of Manhattan's prestigious Upper East Side. The Hotel Plaza Athénée Nobu New York is a collaboration between AWC and Nobu Hospitality. TFE Hotels has officially launched its premium extended-stay brand, A by Adina, in Europe, marking a major milestone in the company's expansion strategy. The first European property, A by Adina Vienna Danube, opens in Austria's capital, offering a new level of luxury in apartment-style accommodations that combine independence with high-end hotel services. The European debut of A by Adina comes as TFE Hotels continues to strengthen its presence across the continent through its established Adina Hotels brand and its tech-enabled concept, MM:NT. A by Adina Vienna Danube delivers a gym, a yoga studio, a private heated infinity pool, a member-exclusive wellness area that includes saunas and an infrared cabin, and an onsite restaurant and bar.
South China Morning Post
16-05-2025
- Business
- South China Morning Post
Decades of partnership: UOB helps Harilela Group grow family business into hotel empire
04:17 How UOB partners with Hong Kong's Harilela Group to expand its hotel business globally How UOB partners with Hong Kong's Harilela Group to expand its hotel business globally When a business charts its path for expansion, banking services alone are not enough. True progress demands a strategic partner – one that will share the organisation's long-term vision, align on measurable objectives and cultivate relationships rooted in trust and mutual respect. These values are at the heart of how United Overseas Bank's (UOB) Group Wholesale Banking (GWB) division supports clients across the Asean bloc of Southeast Asian nations and beyond. Through tailored financing, investment promotion and strategic advice, UOB helps businesses pursue overseas expansion and profitability. 'UOB drives business connectivity and cross-border trade within the region and from Asean to the rest of the world. Through us, businesses can find the right partners, enhance working capital efficiencies and expand seamlessly into new markets,' says Christine Ip, CEO of UOB Greater China. 'We have an extensive regional footprint, strong sector expertise and deep local market knowledge.' Such support is crucial in Asia, where opportunities abound in emerging technology sectors as well as in more traditional industries like hospitality. With the right projects and banking partner, even long-established names can unlock fresh avenues for expansion. One such success story is the Harilela Group, a Hong Kong-based hotel operator that is a long-time UOB client. For over 30 years, UOB has supported the group's diverse needs, from corporate banking for its hotel operations to private banking services for the Harilela family. The Harilela family stands before the building site of the Holiday Inn Golden Mile in Hong Kong in 1974, the year before the Harilela Group's flagship property opened to the public. Photo: Harilela Hotels On the hotel side, this enduring partnership has included mergers and acquisitions advisory for both purchase deals and asset disposals, as well as cash management and treasury functions for key properties like The Hari Hong Kong and the Holiday Inn Singapore. When necessary, UOB also provides tailored loan facilities and hedging solutions to protect the group against market volatility.
