Magnuson Hotels: What to do about “the shift.”
What to do about “the shift.”
We’re all owners, doing whatever it takes to keep our hotels/motels alive so travelers can have a comfortable place to sleep. Most owners only expect to make a fair living for our families, pay our employees, and run a place we can be proud of.
- It’s the biggest occupancy crash in history.
- 64% historic level for 50 years
- -10% drop 2009 YTD
- -15% new supply. Largest in history.
- =39% new US occupancy level
Corporate franchise greed driving the largest hotel supply increase in history?
Underdemolished? Tell that to the family who owns one of the 8000 midscale limited service US properties that are between 10-19 years old, yet a long way from the average demolition age of 35 years. A child could be born, grow up and go to college in the 20 productive years left on these hotels.
Sell unrealistic dreams to drive corporate franchise revenues at the expense of the little man? Wasn’t there a Countrywide Home Finance Mortgage Company that did that?
There are no more cycles. Here’s what to do about “the shift.”
- Take action now, or you will become an unfortunate statistic.
- Cut non revenue producing costs-franchise fees are the largest.
- Go for the business that is in your town; implement market share warfare with Magnuson Hotels.
- Sell your entire inventory; you can’t sell yesterday’s room.
- Don’t have an inferiority complex with rates.
- Use Priceline and Hotwire, they are your best online channels now.
- Online renovation with new images-cheapest and most effective marketing you can do.
- Maintain your online quality rankings with Tripadvisor, etc. 70% of all online bookings start with reviews.
- Reposition with a no-cost Magnuson brand and receive brand rebates; all direct hotel revenue is royalty and commission-free.
- Pay your travel agent commissions and you will be rewarded with an increase in corporate and government business.
Start today with an absolute refusal to accept losing.
We understand the battle each owner faces, because we’re owners too. While traditional franchise hotel chains are in the brand business, Magnuson Hotels is just like you—in the hotel business. What matters most is selling as many rooms as possible at the lowest cost.
For every hotel and motel owner out there battling to survive, we raise this flag for you. Together, we are Magnuson Hotels, the world’s largest independent hotel group.
Phone: (509) 747-8713