Hotels are a constantly dynamic animal: Justin Lanzkron
Provincial UK offers tremendous opportunity for hotel owners and investors, as do big cities, says Justin Lanzkron, Senior Development Manager at Atlas Hotels.
With over 20 years in the hotel property sector, Justin Lanzkron has a highly impressive CV, having held roles at HVS, PPHE Hotels Group, Louvre Hotels, Colliers International, Hamilton Hotel Partners, Invesco Real Estate, Topland Group of Companies and West Ridge Asset Management.
Currently the Senior Development Manager at Atlas Hotels, Justin spoke exclusively to TOPHOTELNEWS at TOPHOTELWORLDTOUR London 2017 about keeping down hotel costs, how Brexit may impact the industry and the hotel development potential of provincial UK.
Lots of different levers that can be pulled to impact a hotel
Justin: Hotels are assets. You have to constantly look at your costs. You have to constantly look at where the revenue’s coming from. Hotels are a constantly dynamic animal. It’s not just one in and one out in terms of revenue. There’s lots of different levers that can be pulled to impact a hotel.
Managing costs is a big challenge in the hotel industry. You have to constantly be asking if you have got the right people; have you got too many people in terms of payroll? Try and think of some part-time people so that when your business is up, you can have more people. There are a lot of operational ways to drive revenue and manage costs.
The million dollar question of Brexit
Justin: At this stage, no one really knows how Brexit’s going to positively or negatively impact the hotel industry. Will it be good? Maybe more Americans are going to come to this country; English people are going to have to stay at home: staycations. Is it going to be good in that respect or is it going to be bad as things will be more expensive. If you’re buying wine or cheese from abroad, will that then be more expensive.
There are lots of forces that are going to be either negatively or positively impact hotels in the coming years. But there’s also a huge opportunity. I think the interesting trend of leisure hubs is going to be more prevalent in our industry.
Provincial UK an exciting place for hotel investors
Justin: Provincial UK is a very exciting place. The investors we work for are looking at provincial UK as there are big opportunities there. However, there’s still huge demand for hotels in big cities, so owners want to own hotels in those markets as well. So, I think there are challenges but there is certainly opportunity in the next three to five years.
Justin Lanzkron was a delegate at TOPHOTELWORLDTOUR London 2017. To attend, address or sponsor our boutique hospitality networking events around the world, contact the TOPHOTELPROJECTS team.