NEWCRESTIMAGE IS TAKING its years of experience managing the hotels it owns and entering its first third-party management contract. The company will oversee the 163-room Holiday Express Inn & Suites at Dallas-Fort Worth Airport North, including a renovation currently under way and expected to be completed early next year.
Dallas-based NewcrestImage, under Chairman and CEO Mehul Patel, will manage the hotel’s sales and financing as well.
“We have launched a new third-party hotel management service so absentee owners of mid-market and upscale properties can benefit from our company’s experience, expertise, and stability,” Patel said. “Our immediate goals include increasing revenue, reducing costs, and improving the guest experience, while our long-term objective is to enhance and maximize market value of the property.”
The third-party management service falls under NewcrestImage’s hotel management division. The company’s other two divisions include real estate development and construction. The company has purchased, built and managed more than 100 hotels over the past 12 years. It currently has 28 hotels open and 15 in the pipeline, with some of the latter under renovation for reuse in historic districts.
In August NewcrestImage opened a 94-room, four-story Tru by Hilton in western Amarillo, Texas. The Tru is the first element of a three-hotel, 300-room “hotel campus” going up along Interstate 40. The other two properties are a 90-room Hyatt Place and a 90-room Aloft by Marriott International, both slated to open in 2019.
Third-party management is becoming more popular with Asian American hoteliers.
“Business in general has changed because of the way we consume goods and services,” said Raj Chudasama, a managing partner at Kriya Hotels in Irving, Texas. “The industry is more segmented. You can add whatever you need – a consultant, a manager, a trainer.” Kriya has been hired simply to train a new hotel staff on the finer points in management. Those contracts are short term, about a year, Raj said. “That’s where a lot of people are finding value in third-party managers.”