Three notable figures in the Australian hospitality landscape have joined forces to propel the independent management model for hotel operations in Australia and New Zealand.
Trilogy Hotels – a venture run by Scott Boyes, Tony Ryan and Grant Alchin – is based on the trilogy of owners, guests and team members, and aims to positively impact the lives of these core stakeholders.
At the time of launch on Thursday December 14, Trilogy Hotels says it is in the final stages of securing a major deal in Australia and New Zealand.
The independent management model is well-established model in the US, and Trilogy Hotels CEO Scott Boyes sees great potential for this model in the ANZ market.
“Here in Australia and New Zealand, the industry has relied heavily on the traditional hotel management agreement model where hotel owners engage with a particular hotel brand for both their distribution and operating capability,” Boyes said.
“However, in the US and Europe the independent management model, with brand support under a franchise agreement is the predominant model preferred by hotel owners and hotel brands alike.
“We are expanding that model further and tailoring it for the Australian and New Zealand market to help hotel owners feel more connected with their investment, whilst partnering with and utilising the exceptional distribution capability of a global hotel brand. We look forward to collaborating with multiple global brands to deliver great outcomes for owners.”
Prior to founding Trilogy Hotels, Boyes had spent close to 30 years with Accor, in a career which saw him start out as a graduate front office manager to become its Senior VP of Operations, Pacific North. During this time, he was responsible for 85 hotels across NSW, ACT, QLD and the NT.
Tony Ryan, a commercial and legal advisor to hotel and hospitality businesses, brings more than 35 years’ experience. Specialising in complex and major transactions, Ryan helped deliver Accor’s US$940 million takeover of Mantra Group.
Grant Alchin, a former Head of Asset Management at diversified real estate group, CapitaLand, has also worked within Accor and IHG, and is highly regarded for transforming underperforming hotels into profitable operations.
Independent management model
Trilogy Hotels will provide hotel owners and brands with an operating platform for investment-grade assets where hotel operations are managed independently by Trilogy’s team.
Hotel brands may, under a franchise agreement, provide globally established branding, marketing, distribution, and loyalty programs, while Trilogy manages the hotel operations and drives the operational and profit performance on behalf of an owner.
The company also provides access to operational systems, training and team development.
A major success story in the US market, Aimbridge Hospitality has been widely recognised, including by key leaders at Marriott, Hilton and IHG, for its adoption of the independent management model.
Having started out in 2003 with eight hotels, the business has since grown rapidly to more than 1,500 properties across 23 countries.
Marriott International Area Vice President for Australia, New Zealand and the Pacific, Sean Hunt, has already thrown his support behind the independent hotel management model and expects there will be opportunities for Marriott to collaborate with Trilogy Hotels in the future.
“We commend Trilogy Hotels on their decision to enter the market and have no doubt that their high calibre personnel will offer certain hotel owners a valuable alternative to traditional hotel management models,” Hunt said.
“We anticipate powerful opportunities will exist for Marriott International to bolster Trilogy’s success by partnering with them under franchise agreements with our global brands.
“This collaboration will be central to maximising distribution reach and financial performance for assets under Trilogy’s management, and will deliver genuine benefits to hotel owners, their management company, and our hotel brands.”
JLL Hotels and Hospitality Managing Director, Gus Moors, has also thrown his support behind Trilogy Hotels’ approach, saying owners and investors are seeking a more localised approach.
“In a mature market like Australia and New Zealand, I’m very much in support of the approach that Trilogy Hotels is looking to adopt as it lines up with successful investment trends in both Europe and the US,” Moors said.
“By blending independent operations with brand support under a franchise agreement Trilogy Hotels offers hotel investors a compelling opportunity. I believe both hotel owners and investors are looking for ways to achieve positive outcomes through more local and bespoke hotel operations while still benefiting from the global distribution and presence of successful hotel brands.”
“Hotels can change lives”
Boyes, Ryan and Alchin say they are driven by a shared passion for hospitality, a desire to improve the industry overall, and the belief that “hotels can change lives”.
“Hotels are spaces where stories intertwine, where dreams are nurtured, and where connections are forged,” said Boyes.
“With an unwavering commitment to our hotel owners, team members, and guests, we also recognise our role in positively influencing the environment and the communities in which we are privileged to operate.”