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It has been said that the only innovation which has taken place in the hotel industry in the last half century and beyond is that somebody thought it would be a good idea to put a flap at the end of the toilet roll. That is a pretty glib comment. Whether or not this is an accurate assessment of times past, it is fair to say that since the passing of the pandemic we have definitely seen quite a bit of hotel space innovation in Australia and more broadly.
In recent days we have issued newsletters on the significant changes which are taking place with hotel management agreement negotiations, the emergence of white label management and the somewhat belated appearance, in Australia at least, of luxury branded residence developments. All of these newsletters are available on request and we encourage you to reach out and read what we have to say on these important topics.
Today we are turning our attention to another innovation of sorts – the concept of split management. This is effectively the split in operating control between the Food & Beverage (F&B) components of a hotel and the other aspects of hotel operations, particularly the accommodation components. This should not be confused with the longstanding practice for a hotel operator to lease the hotel's signature restaurant to a high-end restaurateur with a generally well known reputation and following. Split management extends this concept further in entrusting the entire F&B component to a recognised operator in this space.
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