Financial Problems - A Detonation for Boutique Hotel Management

Astudo Hotel & Resort Group, Asia’s most important boutique hotel management company, find out that the economic problems worldwide are proving to be a boom for hotel management services in the hospitality domain.

Anthony McDonald, CEO of Astudo Hotel & Resort Group, said that ”the most of the boutique hotels and resorts are harassed in this hostile economic market and many owners are now faced with the difficult decision to either close their doors or look for professional management and in particular international sales and marketing expertise”. He added that “With larger global hotels slashing room rates, boutique and midsized hotels and resorts were getting squeezed by the big guys”.

In Thailand, tourism continues to suffer from economic and political problems, resulting in violent competition amongst hotels. There was a flood of investment into the boutique hotel london market over the last decade, but most resorts and hotels failed to adequately distinguish them self and carve out their own market position. There was a affinity for owners just to copy other hotels rather than think about the longer term positioning of the property. “Owners were able to still attain sufficient performance when the market was good, but now that things are tougher, they are suffering due to poorly conceived concepts” said McDonald.