Exceptional hospitality Reed's usually have their hotels targeted at the high end segments. The term high end segments here refers to both the upper and business class groups of people. The reason for doing so is because the entry barrier is high when it comes to targeting the wealthy. It takes more effort, time and capital to build a chain of high class hotels relative to say, a chain of hostels or lower end hotels. Because of this high barrier of entry, your yields are better protected. Think about it.

With the onset of sneaking competitors like Airbnb motels, backpacker ends and any hotels below a four star rating we'll be facing fierce competition from homeowners. Of course when it comes to targeting wealthy guests, it is not Easy. These people demand high standards. And these high standards refer to a variety of expectations, expectations on service on the amenities, how the hotel looks on the inside and out and so forth. Therefore exceptional hospitality reads through the hotel operators they partner with, always ensure their hotels are up to standard. But where then can we find these valuable insights on hotel standards?

The answer, use booking.com and hotels.com. Let's look at this American hospitality read called pebble Brook hotel trust. I want to ascertain whether pebble Brookes hotels are up to standard so I randomly pick five hotels in their portfolio and look at Argonaut hotel first, using booking.com. I can immediately see That Argonauts average rating is 8.7 out of 10. With high scores on cleanliness, comfort, excellent location, facilities and staff. The only category that wasn't so well received was the value for money portion.

Nevertheless, let's also not forget about the reliability of this score. The rating score of 8.7 is justified by close to 2000 reviews, as you can see over here, with the latest review showing that the hotel has exceeded the expectations of a couple from the US. This indicates that this 8.7 score is up to date and reliable. I do this for the rest of the other four hotels and find the average score to be a solid 8.4. To me, a score of eight and above means that high standards are at the very least being met. I can then conclude with reading Reasonable confidence that pebble Brook hotel trust manages their hotels well, which is a clear sign of his exceptional hospitality read.

Here's a piece of practical advice when it comes to reviewing hotels in the portfolio. Just take a few hotels for review and make sure the hotels are in different areas. pebble Brook hotel, for example, has more than 30 properties. I don't view every one of them to be honest, I just review about four to seven hotels, which is more than enough to give me a feel for how the hotels are managed. Now for location pointers. I have not encountered any difficulty in getting location reviews on hotels from any of the hospitality reads that I have invested in, by and large thanks to websites such as booking.com and hotels calm.

However, in the event that you cannot find a location review on a hotel that your hospitality read holds Then remember this rule. A desired location for any hotel is the one that is near established attractions. The concept of established attractions refers to places that offer a unique experience to visitors and have been attracting visitors consistently for a long time. Note that established attractions can be man made or natural. The Trevi Fountain, located in the picturesque eternal city of Rome, is one perfect illustration of an established attraction. How much do you think the fountain alone has collected in a week from tourists throwing coins into it?

Well, it's 25,000 US dollars a week. Imagine the amount of money the hotels earn in that area. It's mind boggling. This is important due diligence pointing to me. Especially when it comes to investing in foreign reads or, in a situation when your hospitality read purchase a hotel in an unfamiliar location due to the promise of a new attraction. You see, promising attractions could always end up like the abandoned park of heaven in Japan, or the Luna Park in Hong Kong.

These attractions once promise investors have a bright future, but fail to deliver due to many unforeseen factors. Hotels surrounding these new attractions were eventually vacated and we're shut down. Now, imagine investing millions of dollars in a hotel near these destinations, it would be a relentless nightmare to any investor to deal with. Therefore, please be aware of how your hospitality read expands. Ask yourself are they buying hotels in unfamiliar locations or an established destiny? Nations, exceptional rates usually go for the latter.

Now, when it comes to the management of hospitality rates, exceptional ones tend to have an ingenious strategy in place. Some examples of these clever business strategies include buying into well located but underperforming hotels and repositioning them, or proactively building relationships with well known hotel operators, leasing the hotels and getting them to cover the costs of running those hotels. The strategies can be recognized by reading the message to investors portion of the reads annual reports or if you don't like reading by interacting with the management during shareholders general meetings, which is another sure way of finding out the strategies in place. As a read investor, you need to contemplate whether the strategy makes sense and if it does, go for it. hospitality reads. Although there are plenty of business strategies a hotel read can implement, only the ingenious ones can result in a growing average daily room and occupancy rates.

So do look out for these two growing numbers. Lastly, on the topic of cost savings, exceptional hospitality reads often find ways and means to reduce operational costs efficiently without compromising standards. This could include number one, outsourcing laundry, number two, encouraging employees to self insure. Number three, taking advantage of cost saving technology and implementing it in each room. Number four, ensuring that its labor force is predominantly non unionized, and so forth. So do look out for all these pointers when selecting a hospitality read.

Here is your criteria list. Thanks for listening