CBRE is expanding its Hotels division with a new Management Rights service line following the appointment of Chris Novak as a Management Rights specialist.
The expansion aligns with a heightened focus on the management rights model from major operators including Mantra, Minor/Oaks group, Quest and Wyndham due to the low cost of entry and a rapid increase in room inventories.
There are approximately 3,300 Management Rights businesses in Australia, of which 85% are located in Queensland. However, other states are increasingly recognising the value in this asset class.
Wayne Bunz, National Director CBRE Hotels, said; “As a market leading firm, CBRE Hotels continually reflects on how we can best serve our clients. With the addition of this new service line we are bridging a gap which has not been filled in the past by any top tier agency firm. Due to the recent hotel and residential supply increases in markets such as Brisbane we foresee management rights as an asset class on the rise.”
Paul Fraser, Director of CBRE Hotels Queensland, said; “We have had many investors request this service in the past and have identified this as a significant growth area and a real gap in the market. With such a high percentage of management and letting rights located in the Sunshine State we felt it strategically important to have Chris based here in our Brisbane office with a focus on selling Management Rights across the nation working closely with our Residential Projects teams in each state.”
Given the new supply and challenging market conditions in Brisbane for rental and off-the-plan sales, developers have been moving into the Management Rights sector with greater urgency, perceiving these to be secure, income-producing businesses which can drive profitability.
Mr Novak has over 30 years of experience in general management and senior sales roles.
Throughout his career, he has been involved in hotel corporate recovery, launch, relaunch, rebranding and revenue improvement projects. Prior to a decade spent in the management rights industry, Mr Novak also worked in full service hotels such as the Hyatt, Sheraton, Watermark, Nikko and Daikyo hotel chains in Australia and Asia, where he lived for many years and still has extensive contacts, in addition to his experience with serviced apartment hotels, most recently with Central Apartment Group and Prime Property Australasia.
“Chris has significant expertise in the improvement of revenue, profit and asset value through online and offline strategies and the management of distribution channels, gained through general management and sales and marketing roles in Australia and Asia,” Mr Bunz said.
“This has delivered clear benefit for owners in relation to higher profits, values and sales prices.”
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.