Q: There are numerous hotel management companies out there, new and old ones. What makes you different from the others / your competitors?
Yvonne: CHG’s first major differentiator is our people. We are a very international team, bringing over 70 years of combined experience from the hospitality industry in the categories of hospitality innovator, architectural design, real estate investment and food and beverage.
Then our second major differentiator is our business model. We are a lifestyle branding company with less bureaucracy and offer flexible brand standards. More importantly, we are an owner and investor in Real Estate. We think like hotel owners and thus, have an asset management mindset, able to build our hotels substantially lower development cost without sacrificing quality and committed to generating high returns on invested capital.
Q: Why would a guest choose to stay in one of your hotels over your competitor’s?
Yvonne: Besides our innovative programming, the travel experience in Asia is still very fragmented, disjointed and hotel companies address transportation, restaurants and tourism the old school way through concierge services.
We’re disrupting that mode by building an innovative technology platform that offers a varied and more personalized travel experience to our hotel guests. One that allows guests to use their mobile device to personalize everything about their stay, from room selection, to F&B experience, and to how they interact with the hotel and with each other. This will be an industry game changer.
Q: Why should investors partner with you?
Yvonne: CHG has the know-how and capacity to scale our business and grow our pipeline throughout Asia and the Americas. Selecting the right partner for each project is pivotal to growing a mutually beneficial business. Because we are hotel owners ourselves, we are passionately committed to generating higher returns for owners than the other hotel brands.
Q: In regard to the – ‘maximizes the benefits for our owners, customers, communities, employees and partners’ – could you please expand? Sometimes maximizing the benefits for owners might mean compromising certain quality aspects of a hotel?
Yvonne: Being a lifestyle hotel brand frees us from the obligation that is tied with traditional 5 star hotels. A traditional 5 star hotel brand standards has on average 497 brand standards by key product and service touch points. These brand standards create enormous capital costs and require ongoing maintenance capital reserves. In comparison to CHG, we believe in high quality but are able to deliver exception product with less standards, For CHG, we only have on average 195 brand standards, generating 5x investment returns.
Q: Given that there are more and more competitors springing up in the market, what challenges do you anticipate Cachet Hotel Group facing in the near future?
Yvonne: I think the market is leaning more in CHG’s favor due to our proposition to hotel owners and our mission statement of creating value with smarter investment and development strategies. Our brand portfolio can accommodate 50-500 keys from limited service to full service, in addition to innovative programming such as international F&B, nightlife and entertainment offering. There is no other company like CHG in the market place today.
Q: What marketing advice could you give to our readers who may be looking to promote their hotels?
Yvonne: Embrace digital and mobile technology. Today’s travellers are getting smarter, tech savvy and use their mobile devices as an extension of themselves. They seek wisdom from the crowd and the cloud and will check 10 online sources before making a purchase and will trust advice from strangers more than his or her own friends and family. Therefore hotel brands have to connect with their potential customers on social media, and have a dialogue with their guests even after their stay such as immediately posting responses on customer feedback. Hotel companies have to face head on negative reviews as enthusiastically as good reviews. In the end, this will build your reputation in the crowd and the cloud.
CACHET Hotel Group operates its own real estate development, restaurant and nightlife management and retail subsidiaries. Using its international formula for success, CHG is broadening and expanding to other markets in China, SE Asia, United States and abroad.