Hotel management company Fiveways Hospitality has seen a sharp rise in enquiries from private hoteliers who are struggling to attract the next generation into the family business.
Compared with last year, the Birmingham-based company has already seen a 25% increase in enquiries in the first weeks of 2018, from the owners of family-run hotels who want to keep their asset and benefit from a regular income but hand over day-to-day management.
Robin Ford, Operations Director at Fiveways Hospitality, which manages Park Regis and nitenite hotels in Birmingham, Holiday Inn Express in South Birmingham and Knowsley, and Pelham House, Lewes, said bringing in a management company provided the perfect solution for many businesses. It not only helps to safeguard jobs, the organisation is also able to access its extensive facilities and resources, which can save money.
“Already in January we’ve seen a marked rise in the number of second and third generation hoteliers who are reluctant to sell the business they have helped to build up over decades, but because their children have pursued careers in other sectors and have no desire to run the family hotel, they are left with difficult choices,” he said.
“It’s understandable they don’t want to sell up because of the emotional and financial investment they have made, so we are able to offer them the perfect alternative: we run the hotel on their behalf, maximising profit and reputation, and they retain the asset and income.
“It’s impossible to say why 2018 already seems to be a year when people are looking to make changes, perhaps they are challenging the general feeling of uncertainty that has gripped the nation recently, and are deciding to make their own big decisions.”
Fiveways Hospitality says the existing owners can be as involved or as hands-off as they wish within the business, and that special conditions – such as retaining staff, hiring seasonal staff and maintaining the hotel’s name and branding – can be agreed.
“We consider this arrangement to be a win-win for a family-run hotel because they can still maintain some control but they can step away from the business they have built and enjoy a welcome income from their asset,” explained Robin.
“Using our expertise enables us to review sales and marketing as well as put in place appropriate plans to develop the business and invest where necessary. Operating a flexible management contract package makes sense because what works for one hotel will not work for another.”
Family hoteliers who are thinking of future options for their business should contact Robin at Fiveways Hospitality on 07903 994 936. More information is available at 5wayshospitality.com.