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PARTNERSHIP: AXSIA - BRIDGING THE GAP
BRIDGING THE GAP
With 150 years of hotel experience combined, investors are looking to the team at Axsia HTL to bridge the knowledge gap and maximise their return on investment. Here, Axsia HTL Managing Director, David Simpson, shares an insight into the asset management landscape.
Tell us a bit about the Axsia HTL business and the people behind it?
The company was founded in 2019 by Ian Knight, Bill Edwards, and myself, later bringing on David Fraser as a shareholder. Bill and David are the operations experts and work closely with our asset management portfolio to ensure optimal performance for each of the assets.
Our team works across multiple complementary projects from new hotel development, feasibility studies, market research, operator selection, which all lead to asset management projects. Recently, we have added to the team bringing on Daniella Tonetto, whose expertise lies in sales and marketing and driving revenue optimisation, and Robert Scullin who consults across all facets of the business. Rounding off the team we have Nicole Grainger who is our Research Analyst, ensuring we have the most current market information and trends for our project work, along with a small group of specialist consultants for regional tourism, technical services reviews and non-HTL property matters.
What sets Axsia apart from its competitors?
Our team members have all come from big brand international chains, working across Asia Pacific, bringing with them a wealth of experience across all facets of the hotel operation. Our approach to asset management is very focused on driving revenues to grow investor returns. Whilst we take a hard look at the numbers, we ensure this is backed up with a strategic approach across all aspects of the business, driving vision and strategy ultimately leading to better returns.
Our team is multidisciplinary, bringing invaluable insights to the property teams.
What are the key benefits of asset management?
Hotel asset management allows industry experts to drive business results for the owners. Owners simply must be involved in setting and monitoring the business strategy no matter how capable the operator is. Optimal performance can be achieved by aligning the operator to the owner’s longer-term vision and investment objectives. Asset management fills the void that is present in developing a bespoke strategy for the owner’s asset.
What are the top trends that you’re seeing in hotel development?
With the resurgence of travel for business and leisure, we have seen greater demand from owners looking for something new, more personalised, and experiential. This has led to the emergence of new lifestyle brands in the market – Ace Hotels, SH Group with 1Hotel and Treehouse brands, The Standard and Ennismore just to name a few.
We are also seeing more interest in franchising and white label management, with investor/owners wanting more control over their business.
What are your primary considerations when engaging with a client on a hotel project?
We need to determine early in the conversations if the development can be successful, therefore careful due diligence applies. This includes ensuring the developer’s vision is realistic and how can it be optimised. This saves time and money from the beginning for all interested parties. Secondly, is it bankable and what does the market valuation look like? Lastly if the project is a mixed-use development, how will the hotel add to the broader project and how can we capitalise on this for the investment. Then we go to the market for the operator and brand with a clear and precise vision. Ultimately, we want the brand/operator to show us how they can add value to achieve the owner’s vision.
Tell us about some of the exciting hotel projects in your portfolio.
1Hotel Melbourne: This is the first hotel for the SH Group in Australia and will bring a new brand to market in late 2024. We assisted the developers (Riverlee) to source a new and cutting-edge brand which we feel will add to the luxury hotel landscape that Melbourne has to offer. This is also the first branded residential project for SH Group globally.
The Tasman Hobart, A Luxury Collection Hotel: This is the first new build Luxury Collection Hotel in Australia. Again, we worked closely with the original developers to develop the concept and source a brand which would fit the existing building and the market positioning. The hotel has won numerous awards since opening and is now settling well into the Hobart luxury hotel market.
Ace Hotel, Sydney: This is the first Ace hotel in Australia. They hold regular laneway events that engage the community within the spaces. This is a development that has successfully integrated a smaller footprint with an upper upscale brand with the added benefits of very successful F&B spaces.
Holiday Inn and Indigo Bourke Street: This property is currently under construction, with completion expected early 2026. This is a unique dual branded property in an A+ location which takes advantage of a shared back of house to gain economies of scale.
Sheraton Grand Mirage Resort, Port Douglas: We were proud to add this property to our portfolio many years ago as one of our first asset management projects. We worked with the owner and hotel management team to create a shared vision to renovate and reposition the property to create very positive investor returns. It has won many awards and our involvement has nurtured development of the hotel executive committee into one of the best in the country. They have completely embraced our strategic philosophy to develop a plan that has optimised the owner’s value and are now planning the next phase of investment and growth.
