UK: Owner-operator BGAM Hospitality has launched a new division, BGAM Hotel Management, as the company plans to expand its portfolio of independent and boutique hotels.
BGAM Hotel Management launched this month and is focussed around two principles: agility and accountability.
Hotel owners can choose from three options:
• Consult – a brief consultation for guidance and advice.
• Collaborate – a few weeks or months’ project-based assignment, focussed on a specific challenge.
• Contract – a longer-term arrangement where BGAM takes over management and operations.
The contracts can be 12 months or open-ended with the flexibility to terminate at an agreed short notice. If certain agreed upon KPIs are not delivered, BGAM will be penalised.
Jonny Levy, CEO of BGAM, said: “BGAM Hotel Management offers owners freedom and results. The team and I are confident of our results-focused approach that we place significant penalties on ourselves if KPIs are not achieved. Key areas of support for hotel owners include asset value growth, commercial performance, exit strategy and ESG integration.
“We have a unique approach to hotel operations, which is why we achieve better returns. Our COT model – Council of Talent – brings together five working groups from across the business: commercial, finance, operations, ESG and property, to work on the bigger challenges and projects in the respective areas. This way we leverage the talent, get them exposed to a wider scope and achieve better results.”
Levy added: “Our latest acquisition of The Stones Hotel has turbocharged our interest in boutique and independent hotels. We are looking to speak with owners who are either ready to exit or looking for an operator who can quickly turn around the commercial performance of their asset.
“Our philosophy of agility and accountability is a great fit for boutique hotel owners. The Stones Hotel transaction has been performed in merely two weeks from viewing to transfer of ownership, which shows how agile and fast-moving we can be when we see the right deal.”
BGAM Hospitality consists of two business divisions. In addition to the newly launched BGAM Hotel Management, BGAM Asset Management owns and operates six hotels with 684 rooms evaluated at over £50 million. This is set to increase in 2024 as the team actively looks to grow its portfolio.