As an owner, items that I consider important when choosing a hotel brand
----In February of this year, three Garner Hotels opened in Osaka. As an investor, could you tell us why you chose IHG's Garner Hotel brand?
Both IHG and myself share the same vision for Japan’s hospitality market. They recently launched globally the “Garner Hotels” brand to enter into the midscale segment, targeting travellers seeking quality at an accessible price, which is also a direction I strongly believed in, given Japan’s significant potential for a premium midscale offering, amid its robust domestic and international tourism growth. I would like to create a new hospitality product that fits the lifestyle midscale image and saw the opportunity to be the first to introduce “Garner Hotels” in Asia and Japan, which allow us to have certain flexibility to reposition our existing properties that fits our concept and vision. This aligned perfectly with the market’s demand, while IHG’s global presence ensured the properties could deliver consistent value and attract a wide guest base in a competitive landscape.
----As an investor, what do you consider important when choosing a hotel brand?
Selecting a hotel brand involves a thorough evaluation of both the hotel company and its specific sub-brand to ensure alignment with the asset and its business potential. When considering major international hotel companies, each with a portfolio of sub-brands, firstly is to assess their local operations, as their expertise directly impacts our operational success in a given market. Equally important is the robustness of sales and distribution networks, which drive bookings and revenue, alongside the level of support provided by their headquarters, ensuring resources and strategic guidance are readily available. Beyond the company level, the choice narrows to the sub-brand itself. This also requires analyzing the asset’s specifics: its targeted segment, location, potential guest profile, and the facilities it plans to offer. These factors determine the property’s overall positioning, and the selected brand must complement both the asset’s characteristics and the business objectives, creating a cohesive fit that maximizes value and guest appeal.
----What are the three most important factors when developing a hotel? Also, what do you think about owners being involved in hotel management?
When developing a hotel, I consider three factors paramount: location, brand concept and design, construction and cost management which are all equally important. Location is the basic foundation, its accessibility, proximity to demand drivers like tourist hubs or business districts, and long-term growth potential dictate a property’s viability and appeal to guests. Brand concept and design come next, as they shape the hotel’s identity and market positioning; a well-crafted concept tailored to the target audience, whether it’s a midscale traveller or a luxury seeker, paired with a functional yet distinctive design, ensures the property stands out while meeting operational needs. Finally, construction and cost management are critical to execution, maintaining quality within budget and timeline constraints preserves profitability and avoids compromising the vision, making it essential to oversee materials, labour, and unforeseen challenges effectively. Together, these elements form the backbone of a successful hotel development, balancing market opportunity with practical delivery.
I often describe hotels as an asset class that combines a real estate asset and a business, which is precisely what makes them so compelling and fuels my passion for this sector. Investment and operations are deeply interconnected, success hinges on structuring a sound deal while ensuring the hotel runs efficiently, and one cannot thrive without the other. My diverse experience sharpened my ability to bridge these two worlds, giving us a distinct advantage in understanding what drives value beyond just the financials. That background informs my approach as an investor. While I don’t seek to manage day-to-day operations, I see significant merit in staying closely engaged with the hotel management team. The hospitality is a people’s business, communication and cooperation is key part to any success, whether you are in operations or investment, and we certainly hope that everyone involved would have the same passion and drive to achieve success.
